Fortis Inc. Unveils Jaw-Dropping $26 Billion Five Year Plan That Will Send Dividends Soaring

Fortis Inc., a well-diversified leader in the North American regulated electric and gas utility industry, recently announced its 2025-2029 outlook, revealing a $26 billion capital plan that will propel the company to new heights. The five-year plan, which is the largest to date, will drive growth through transmission investments at ITC, customer growth in Alberta, and other key initiatives.

According to David Hutchens, President and CEO of Fortis Inc., the company is committed to delivering reliable and affordable service to its customers while providing annual dividend growth of 4-6% through 2029 to its shareholders. This renewed focus on dividend growth is excellent news for investors, as it will mark 51 consecutive years of dividend increases.

The new capital plan is $1 billion higher than the previous plan and includes projects related to the Midcontinent Independent System Operator (MISO) long-range transmission plan (LRTP) and resiliency investments at ITC. Additionally, distribution investments, largely driven by customer growth at FortisAlberta, are also featured in the updated plan. The plan is low-risk and highly executable, with nearly all investments being regulated and 23% relating to major capital projects.

Energy transition investments will receive significant support from the five-year capital plan, with approximately $6.7 billion allocated to interconnect renewables to the grid, renewable, storage, and new natural gas investments, as well as cleaner fuel solutions. This investment will not only strengthen the company's infrastructure through system adaptation, hardening, and modernization but also enhance and strengthen its infrastructure.

The Corporation's five-year capital plan will increase mid-year rate base from $38.8 billion in 2024 to $53.0 billion by 2029, resulting in a five-year compound annual growth rate of 6.5% on a constant foreign exchange basis. Funding will primarily come from cash from operations and regulated debt, while common equity proceeds are expected to be provided by the Corporation's dividend reinvestment plan, assuming current participation levels.

Moreover, the company is likely to benefit from opportunities beyond the five-year plan. ITC estimates at least US$3 billion in investments for MISO's LRTP Tranche 2.1, which will mainly occur after 2029. This demonstrates the long-term potential of the company and its potential to drive growth and returns for shareholders.

As part of the overall strategy, the company announced a 4.2% increase in the fourth-quarter common share dividend. This move is further proof of the company's dedication to creating value for shareholders. The increase will mark 51 consecutive years of growth in dividend payments, demonstrating Fortis Inc.'s commitment to delivering consistent returns.

Overall, the $26 billion five-year capital plan represents an exciting opportunity for Fortis Inc. and its shareholders. With its focus on regulated growth, energy transition investments, and commitment to dividend payments, the company is well-positioned for success in the North American utility industry.